MÜSİAD ROLLS UP ITS SLEEVES FOR POST-PANDEMIC PRODUCTION MOVE

The Independent Industrialists' and Businessmen's Association (MÜSİAD) has launched a production initiative within the "production-trade-investment" triangle to mitigate the effects of the coronavirus (Covid-19) pandemic, which began in Wuhan, China, in December 2019 and quickly spread globally.

The coronavirus pandemic, which has caused a global economic crisis, is predicted by many experts and economists to be a historic turning point in the global economic system.

The fact that the global economic crisis stems from the pandemic also raises the possibility that normalization cannot occur until the disease problem is completely resolved.

The ecological changes occurring worldwide and the problem of global warming are being interpreted as a sign that coronavirus-like outbreaks may reoccur in the future.

MÜSİAD Takes Action for the Post-Coronavirus Period

In this context, MÜSİAD has launched the "MÜSİAD Production and Investment Bases" project to mitigate the effects of the coronavirus pandemic, prevent disruptions to the production and trade system in the face of potential new outbreaks and disasters, strengthen supply and investment lines, and establish a sustainable system.

Commenting on the subject, Chairman Abdurrahman Kaan stated that Turkey will become the world's new supply hub in the post-pandemic period. Kaan said, "Turkey is in an advantageous position due to its geopolitical location. In the post-coronavirus period, the world has realized the importance of spreading risks. It has seen that dependence on China is tantamount to putting all eggs in one basket in crisis management. Furthermore, even if the crisis is over, it will take time for the psychological effects to fully subside and for the perception of production and trade to normalize. In this regard, Turkey has become the world's new supply hub, both for its process management, which has earned global praise during the coronavirus pandemic, and for its perceived sterile and safe production chain."

Positive Image Must Be Turned into an Advantage

Kaan noted that Turkey will hold an advantageous position in global exports in areas where it competes with China. He said, “Production losses in the countries we export to the most (Germany, Iraq, the UK, Italy, and the US) will pave the way for new orders to be offset by imports. Despite China's economic recovery, the fact that social perception remains unchanged in the long term will increase the tendency to view Turkey as a new low-cost producer. If China adopts a policy of rapid production and stockpiling, thereby undercutting prices, it will be necessary to adopt a new production policy based on the inputs we rely on for imports during the recovery period. Furthermore, to compete with Chinese products entering the market at lower prices, the scale of production will need to be ready for high production. In particular, with the expected increase in demand in the food sector, Turkey's positive image in global consumer perception compared to China's should be carefully considered.” Compact Production and Investment Bases, Thought Out at Every Stage

Oktay Dede, Chairman of the MÜSİAD Production and Trade Planning Supreme Board, commented on the MÜSİAD Production and Investment Bases, stating that the project aims to establish complex production facilities throughout the country, taking into account all possible negative scenarios.

Dede said, “Our SMEs, the driving force of the Turkish economy, are the driving forces of employment, production, and foreign trade. Micro and small businesses in Anatolia face significant spatial constraints. Our SMEs generally operate in shops measuring 30, 50, 80, and 100 square meters. The primary requirement for SME growth is spatial organization. Turkey has small industrial sites and Organized Industrial Zones (OIZs). "However, SME structuring bases need to be built here to facilitate the transition of businesses in these small industrial sites to organized industrial zones," he said.

In this context, Dede stated that they have begun implementing the Medium-Scale Industrial Zone (OIZ) project across Turkey. He added, "We opened our first facility in Tekirdağ. Construction of the second prototype has now begun in Hadımköy, Istanbul. We have named this project the 'MÜSİAD Production and Investment Bases' project. We have also received permission and support from the relevant ministries and public institutions. We will soon be implementing our projects nationwide." Precautions Taken Against All Negative Scenario

Dede, providing information about the infrastructure and technical details of the facilities, said, “As part of the project, accommodation facilities were planned for both the logistics center and external teams to prevent sanitation-related blockages in the logistics system. Additionally, a production and transportation line was designed where all isolation measures, including 14-day quarantines, would be provided in guesthouses with health precautions in place. The bonded warehouse established on the site will simplify and speed up export transactions. Additionally, maximum product throughput during packaging and loading will be ensured.”